Tips while planning financing for your first home

home financeAre you planning to get your first home soon and looking for financing tips? Well, that’s just splendid – but you must know that investing on a new house involves a lot of planning and organization and you have to head for that from at least a year ahead. The article here is a discussion on the must-follow tips as you decide to prep up to finance your first ever haven.

The primary most tip here is to ensure a stellar credit score. It’s needless to remind that better your credit score is, lower would be the mortgage rates. The best advice here would be to keep the credit score in 700 which will highly lower down your monthly payments and interest rates. As mentioned earlier, you have to start off from at least a year ahead prior to applying for the mortgage. Thus, incorporate a planned budget so that you never get to go overboard with expenditure and is always able to pay up the bills on time- there should not be any issue of debt or penalties on your credit score. Besides, make sure not to go for any major change during this 1 year span. Don’t shift jobs as the mortgage lender would like to ensure stability of your income that in turn guarantees timely repayment for them. In a nutshell, be very careful and do not commit anything that can adversely affect your credit status.

Then, you must seriously consider your income as you plan for the mortgage. The financial gurus always advise that you stay tight with the sum which you can afford in terms of your income level as otherwise it might affect your repayment caliber. The rule of the thumb here is to have a loan value that doesn’t exceed 28-31 percent of your earning per month.